Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/192901 
Erscheinungsjahr: 
2018
Schriftenreihe/Nr.: 
Working Paper No. 292
Verlag: 
University of Zurich, Department of Economics, Zurich
Zusammenfassung: 
Behavioral heterogeneity arising from cognitive differences among economic agents plays a fundamental role in the economy. To explain this heterogeneity, models of iterative thinking assume that certain choices indicate higher cognitive effort. That is, choices are used to infer the cognitive process behind the choices themselves. To establish this link choice data is insufficient, thus an individually-measurable correlate of cognitive effort is required. We argue that deliberation times provide this missing link. We present a simple model of heterogeneous cognitive depth, incorporating stylized facts from the psychophysical literature, which makes predictions on the relation between choices, cognitive effort, incentives, and deliberation times. In an experimental test, the predicted relations are readily observed in the data, but only when the features leading to iterative thinking are salient enough. Hence, the predicted relations become a tool to uncover the limits of models of iterative thinking.
Schlagwörter: 
Heterogeneity
level-k reasoning
cognitive sophistication
deliberation times
depth of reasoning
cognitive effort
JEL: 
C72
C91
D80
D91
Persistent Identifier der Erstveröffentlichung: 
Dokumentart: 
Working Paper

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